Cash App Launches 'Buy Now, Pay Later' Feature for P2P Transfers

New deferred payment option aims to provide financial flexibility for gig workers and those with variable incomes.

Apr. 1, 2026 at 11:37pm by Ben Kaplan

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Cash App, the peer-to-peer payment app owned by Block, has introduced a new 'pay-over-time' feature that allows eligible users to pay for their everyday transfers over an extended period. The service, which charges a 7.5% fee, is designed to cater to the needs of gig workers, entrepreneurs, and others with variable income streams who may benefit from more financial flexibility.

Why it matters

The launch of Cash App's 'buy now, pay later' feature for P2P payments reflects a broader trend of companies offering deferred payment options for relatively mundane purchases. While proponents argue this can help users manage cash flow, critics warn such services may trap consumers in debt cycles, especially as more Americans rely on variable income sources.

The details

To use the new feature, Cash App users pay a 7.5% fee to pay for transfers of $25 or more over a period of up to six weeks. The company says it evaluates each transaction for eligibility based on its 'responsible lending criteria' rather than setting traditional credit limits. Cash App's Global Head of Business, Owen Jennings, framed the new offering as a way to provide 'cash flow management' for customers with variable income streams, such as gig workers and entrepreneurs.

  • Cash App launched the new 'pay-over-time' feature on April 1, 2026.

The players

Cash App

A peer-to-peer fintech app owned by Block, the company founded by Jack Dorsey.

Owen Jennings

The Global Head of Business at Block, the parent company of Cash App.

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What they’re saying

“We're seeing more folks—particularly younger folks—who are solo-preneurs, entrepreneurs…[and] gig workers. They have side hustles, they're working multiple jobs, [and] so they have variable income streams. It's very different than if you go back like 40 or 50 years ago—I think the average income earner in the U.S. [back then] was basically getting, like a steady W2 income every two weeks.”

— Owen Jennings, Global Head of Business, Block

What’s next

Cash App's new 'buy now, pay later' feature for P2P transfers is the latest offering in the rapidly growing deferred payment landscape. As these services become more prevalent, regulators and consumer advocates will likely continue to scrutinize their potential impact on consumer debt and financial health.

The takeaway

Cash App's new 'pay-over-time' feature reflects the evolving financial needs of gig workers, entrepreneurs, and others with variable incomes. While such services aim to provide flexibility, there are ongoing concerns about their potential to trap users in debt cycles, especially as more Americans rely on non-traditional income sources.